WTI holds position near $66.50 as demand concerns offset Hurricane Francine impact

• WTI prices remain stable as demand concerns have counterbalanced the potential impact of Hurricane Francine on US Oil production.
• Oil demand faces challenges due to the growing adoption of electric vehicles in key markets like China.
• EIA Crude Oil Stocks rose by 0.833 million barrels for the previous week, against the forecasted 0.9 million-barrel increase.

West Texas Intermediate (WTI) Oil prices remain steady, hovering around $66.80 per barrel during Thursday's Asian session. Concerns over weakened demand have offset the impact of Hurricane Francine on the United States (US) Oil production, the world's largest crude producer.

In particular, Oil demand in key markets, such as China, is under pressure, with the growing adoption of electric vehicles reducing oil consumption.

On Wednesday, energy production in the US Gulf of Mexico was partially disrupted, and several Oil refineries in Louisiana scaled back operations ahead of Hurricane Francine's landfall, according to official reports cited by Reuters.

US Oil stockpiles increased across the board last week as crude imports rose and exports declined, according to the Energy Information Administration (EIA) on Wednesday. The report also showed that gasoline demand fell to its lowest level since May, while distillate fuel demand also dropped, alongside a decline in refinery activity.

Despite a smaller-than-expected inventory build, crude Oil prices remained subdued. EIA data showed that Crude Oil Stocks rose by 0.833 million barrels for the week ending September 6, slightly below the forecasted increase of 0.9 million barrels.

Earlier in the week, the Organization of the Petroleum Exporting Countries (OPEC) lowered its forecast for global Oil demand growth in 2024, marking its second consecutive downward revision. OPEC also reduced its demand expectations for the upcoming year.

Oil traders are now anticipating the release of the International Energy Agency's (IEA) monthly market report later this week, searching for indications of a weakening demand outlook, according to a note from ANZ Research on Thursday.